Local Content

To ensure delivery of the best goods, services and works for the Karachaganak operations we cooperate with a large number of contractors, vendors and counterparties both in Kazakhstan and worldwide. We acknowledge the impact of our presence in the West Kazakhstan region and contribute to local sustainability goals by developing local content and creating procurement opportunities.

KPO is one of the first companies in Kazakhstan that successfully introduced the Local Content Development Programme.

In 2019, KPO awarded contracts and contract amendments to 580 contractors and suppliers, of which 418 (72%) — local entities, 162 (28%) — foreign entities.

KPO’s local content development initiatives commenced in the years of 2016-2017 have yielded considerable results: by the end of 2019, the Company’s overall Local Content performance in Karachaganak Project reached 57% (US$ 683.5 mln) as shown in the graph further. Since the beginning of the FPSA in 1997 by the end of 2019, the local content share in goods, works and services procured by KPO had exceeded US$ 7.7 bln.

Share of Local Content out of total KPO purchases in 2017-2019